Is Coinbase Expanding to Africa?
Coinbase’s CEO has recently announced its plans to integrate the Lightning Network protocol into their trading platform. This move could potentially open up opportunities for Coinbase to expand its operations in Africa.
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In the middle of spring, Coinbase CEO Brian Armstrong reached out to African Twitter users. “If you're using crypto in Africa, reply with a short video (<30 seconds) or photo of how you're using it. Best few examples get $100 in crypto. Use hashtag #CryptoAfrica,” wrote Armstrong.
The response was overwhelming.
“I am from Ghana. I use #Crypto to put smiles on the needy and less privileged faces.”
“They sent me XRP from the states and I received in 5 seconds. Is that good? They paid $.001. So fast and cheap.”
“I have been using crypto for 2 years now to build my house using #BCH.”
“I believe in the usage of Crypto so much that I preach it's gospel. Most importantly I use Crypto as a means to beat Inflation in Africa as well as for making various investment decisions.”
The #CryptoAfrica flash mob initiated by Armstrong resulted in an unexpected revelation. When answering a user's question, Brian suddenly announced that Coinbase is preparing to integrate the Lightning Network.
The situation presented a surprising plot twist as Coinbase's plans to integrate the Lightning Network, a second-layer blockchain, could have the potential to revive the financial market in Africa.
“The entire banking system in Africa is completely and utterly broken, even amongst the mobile money providers, the telcos,” stated Paxful CEO Ray Youssef.
In Africa, there are over two thousand payment systems that do not interact with each other in any way. The commission fees of the complex networks of Western Union and MoneyGram are not affordable for many Africans.
Many people, not just those in the blockchain industry, understand that cryptocurrency payments are the solution to such issues. The non-profit organization Human Rights Foundation claims that the continent needs a payment system without debt obligations, loans, and fiat. Africans need to be given the ability to send money to each other directly, quickly and cheaply.
A surge in the adoption of the Lightning Network appears to be looming on the horizon for Africa. This technology is expected to significantly reduce transaction fees and enable almost instantaneous payments worldwide, including between individuals in African countries.
It should be noted that currently, Coinbase services are only available in 15 African countries, while there are more than 50 independent states on the continent. However, both local crypto businesses and global industry players do not discount the possibility of crypto becoming a regional currency in Africa. Coinbase is gearing up to be the crypto champion of Africa, once again showcasing that even in the midst of adversity, opportunities abound for those who are ready to seize them.
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